no increases in wages. >> payroll taxes have gone up. >> have tax rates generally gone up? >> only down? >> exports are weak but they have held unreasonableably. >> we are much better off than europe. it is a worldwide slow down, we are actually doing pretty dam well. >> trade balance will be an all issue two. heat over hagel. commander in chief barack obama has nominated charles chuck hagel for secretary of defense. hagel testified before the senate armed services committed tee this week. is senator john mccain grilling hagel about hagel's opposition to the surge in iraq in 2007. >> were you correct in your judgment. >> i would defer that to history. >> when you were right or wrong about the surge. >> i'll explain why i played those comments. >> i want to know if you were right or wrong. that is a direct question. i expect a direct answer. >> senator hagel explained he opposed the surge in iraq because it cost nearly 1200 american lives. >> i saw the consequences and the suffering and the horror of war. so i did question a surge. i always ask the question, is this going to